Founder & Chief Market Strategist - SAV Markets, SAV Markets

Shyam Devani

Founder & Chief Market Strategist - SAV Markets

Cross Asset Strategy

Is it still the time to be defensive on equities and have a notable allocation in Bonds as was described in the note from 11 May (see <a href="https://www.smartkarma.com/insights/us-equities-time-to-get-defensive" target="_blank" data-smartkarma-citation="insights:51332" rel="noopener">US Equities: Time to Get Defensive</a>)?Whichever chart we look at across markets - whether in fixed income, commodities, foreign exchange, or equities - the signs are clear…stay long bonds (Treasuries) in this environment for the short term.

Is it still the time to be defensive on equities and have a notable allocation in Bonds as was described in the note from 11 May (see US Equities: Time to Get Defensive)?Whichever chart we look at across markets - whether in fixed income, commodities, foreign exchange, or equities - the signs are clear…stay long bonds (Treasuries) in this environment for the short term.

Technical Analysis

Following last week’s note titled <a href="https://www.smartkarma.com/insights/us-equities-time-to-get-defensive" target="_blank" data-smartkarma-citation="insights:51332" rel="noopener">US Equities: Time to Get Defensive</a>, we suggested there could be a notable short term rotation from stocks to bonds this month and possibly next.While equities have slipped, the move down does not yet seem to be over.At the same time we now see a setup on the Long Bond future that is telling us a rally lies ahead. Could this be a short term setup that warrants further caution for Equities?

Following last week’s note titled US Equities: Time to Get Defensive, we suggested there could be a notable short term rotation from stocks to bonds this month and possibly next.While equities have slipped, the move down does not yet seem to be over.At the same time we now see a setup on the Long Bond future that is telling us a rally lies ahead. Could this be a short term setup that warrants further caution for Equities?

A number of charts are beginning to show some concerns that draw attention to the annual mantra: ‘Sell in May and Go Away’We look at different measures and patterns on each of the three major US indices – Dow Jones, S&amp;P 500, and Nasdaq 100.In all cases there are important indications that a decent correction down is likely this month (and possibly beyond). This period should eventually result in buying opportunities, however first we are likely to see some pain.

A number of charts are beginning to show some concerns that draw attention to the annual mantra: ‘Sell in May and Go Away’We look at different measures and patterns on each of the three major US indices – Dow Jones, S&amp;P 500, and Nasdaq 100.In all cases there are important indications that a decent correction down is likely this month (and possibly beyond). This period should eventually result in buying opportunities, however first we are likely to see some pain.

After a period of correction and consolidation over the past few week, it is becoming clearer that a base could be forming on US 30 year yield.Key downside pivots at 2.20% were, and remain, important to watch. So far the supports are holding the market. Focus however is now shifting to the key level above at 2.32%, especially as many industrial metals have rallied.

After a period of correction and consolidation over the past few week, it is becoming clearer that a base could be forming on US 30 year yield.Key downside pivots at 2.20% were, and remain, important to watch. So far the supports are holding the market. Focus however is now shifting to the key level above at 2.32%, especially as many industrial metals have rallied.

The recent bounce in Gold has taken us to a sell zone at a time when yields are stabilising again. A refreshed weekly chart may be able to distinguish the 'wood from the trees' in what has sometimes been a noisy market

The recent bounce in Gold has taken us to a sell zone at a time when yields are stabilising again. A refreshed weekly chart may be able to distinguish the 'wood from the trees' in what has sometimes been a noisy market

United States

Legacy Government (Sovereign) Generic Index-key ticker

US 30Y (USGG30YR INDEX)

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